The Research Of Equity Financing During Transformation And Upgrading Of Traditional Industries

Since China's reform and opening up to outside world, its rapid economic growth has created such a miracle in the history of the world economic development. But the growth gradually declined since the year of 2014, in order to find a new driving engine for the economic growth, the government proposed the strategy of vigorously promoting the development of emerging strategic industries and accelerating actively the traditional industries' transformation and upgrading. As for the traditional industries play an important role in both the economic and stock market, so as a significant corporate financing way, equity financing will have great impacts on the future development in the traditional industries. Therefore, the research on the effects made by stock market on the transformation and upgrading of the traditional industries has an extraordinary significance.Based on the present situation of China's stock market and the development of the industries, the dissertation firstly address the mechanism of stock market promoting the transformation and upgrading of the traditional industries through the theoretical aspect. Then the effects made by stock market on the transformation and upgrading of tradition industries are presented from empirical results. At last, the conclusion goes to that the existing stock market has positive effects in promoting the rapid transformation and upgrading of the traditional industries, but there still exists some problems. The two contributions of the dissertation are creative classification of equity financing of listed companies in the traditional industries and combination of the both perspectives in corporate and industry to examine the effects on the transformation and upgrading of the traditional industries brought by stock market.The article is divided to five parts. The first part is introduction, which contains research background, research objectives, the termination defined and the methodology. The Second part is literature review, describing industrial structure evolution theory, finance theory, and the mechanism of stock market playing roles on promoting the transformation and upgrading of the traditional industries. Thirdly, China's capital market system and the present status of the development of the traditional industries are presented, and in this part, the mechanism of stock market promoting the transformation and upgrading of the traditional industries is also discussed. The fourth part is the empirical research using panel data model to study the different equity financing ways in China make impacts on listed companies and the whole industry operation of the traditional industries, which leads to the conclusion that the stock market has positive effects in the promotion of the traditional industries' transformation and upgrading. The causal analysis and suggestions are also included in this part. The final fifth part is a concluding summarization of contributions and innovations, and suggests prospects concerned in future related research.